Lang
Bursa Malaysia Derivatives Berhad is targeting the launch of a used cooking oil futures contract in December to meet growing demand for the product as a feedstock for biofuels, according to the New Straits Times, citing the exchange's chief executive.
Mohd Salim Abdul Bakar told Reuters at an oilseeds conference in Dalian, China: "We are in the final stages. We are waiting for regulatory approvals."
He noted that, subject to approvals, the contract could be launched in December or during the first quarter of 2025.
The newspaper added in its report published on 14 November that Bursa Malaysia's used cooking oil contract would follow the launch of a soybean oil futures contract in March.
Mohd Salim affirmed that the exchange is seeking to cement its position as a hub for edible oils.
Malaysia is the world's second-largest palm oil producer, having exported around 300,000 tonnes of biofuel last year, while domestic consumption stood at about 1.1 million tonnes, according to the report.
Mohd Salim said: "We are starting to see rising demand for used cooking oil as the market moves towards sustainability initiatives and biofuel-related legislation."
He noted that Bursa Malaysia's used cooking oil contract would target the Southeast Asian market.
The exchange currently offers a crude palm oil futures contract, in addition to listing futures contracts for other commodities including refined palm oil and tin.